A Study On The Location Determination Of Investment Abroad By Chinese Telecommunication Industry

Since China joined WTO in 2001, we have to deal with the entry of foreign investment and to improve our international competitiveness in all industries because of the development of global integration and the continuous deepening reform and openness in China. As the openness of telecommunication is becoming more and more deeply, China inevitably becomes the focus of global competition in telecommunication. Therefore, it is very important for our telecom corporations to invest abroad in an appropriate way.This thesis first analyses the necessity and feasibility for domestic telecom corporations to invest abroad in the background of global integration. We must invest abroad for the following three reasons: the trend of saturation for our domestic telecommunication market, to gain the experiences of international management and the characteristic of telecommunication industry as well. On the other hand, the equal rights we have in the telecommunication markets as a member of WTO and the international competitiveness of our main telecommunications enterprises make the action of investing abroad possible. The thesis then puts forward a factor framework of location determination based on the characteristics of telecommunication industry to describe this issue. Moreover, we explain how these factors affect the location determination. After that, we evaluate the invest environments in telecommunication industry by the fuzzy synthetical evaluation model for given areas—Europe & America, Asia, Africa. The thesis finally concludes that the best areas for our telecom corporations to invest abroad are Europe & America. While Asia drops behind Europe & America for a weak difference, and Africa is the worst place for us to invest. It also gives some suggestions in the end of this thesis.